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Project Management. Maintenance and Reliability 14 Aug 2001.

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Presentation on theme: "Project Management. Maintenance and Reliability 14 Aug 2001."— Presentation transcript:

1 Project Management. Maintenance and Reliability 14 Aug 2001

2 Introduction What – Project Management Where – Where the success or failure of a project will have major consequences for the company Why – At some point every company takes on large and complicated projects – opening a new store, building a plant, developing a product

3 Project Management What is at stake? Large projects, outside of normal production Cost overruns Late completion – penalties Early completion – bonuses

4 Project Planning Project organization Project manager

5 Project Planning Planning Task Work Breakdown Structure Determines gross requirements for people, supplies and equipment

6 Work Breakdown Structure Level 1Project 2 Major tasks 3 Subtasks 4Activities

7 Example Level 1Open a new Retail Outlet 2 Select Location 2 Refurbish Location 3 Signage 4Install new sign 3 Displays 4Install racks 4Install Mannequins

8 Project Scheduling Sequence project activities Allotting time

9 Gantt Chart

10 Project Controlling Monitor resources, costs, quality, and budgets Use feedback to revise project plan

11 PERT and CPM Program Evaluation and Review Technique Critical Path Method Schedule, monitor and control large projects

12 PERT and CPM Framework Define project Develop relationships among activities Draw network connecting activities Assign time / cost estimates to each activity Compute longest time path through network – the critical path Use network to plan, schedule, monitor, control project

13 Difference Between PERT and CPM CPM – one estimate of time PERT three estimates with probabilities

14 PERT Symbols 2 4 Years Activity (Arrow) Register Receive diploma Project: Obtain a college degree (B.S.) Event (Node) Attend class, study etc. 1 Event (Node)

15 PERT Symbols 1 A B A & B can occur concurrently 2 3

16 PERT Symbols 14 2 3 A B C A must be done before C & D can begin D

17 PERT Symbols 14 2 3 A BE C B & C must be done before E can begin D

18 Activity Time Estimates Optimistic Time (a) Most Likely Time (m) Pessimistic Time (b) Beta distribution Expected Time t = (a + 4m + b) / 6 Variance v = [(b – a)/6] 2

19 Critical Path Analysis ES – Earliest Start Time LS – Latest Start Time EF – Earliest Finish LF – Latest Finish S – Slack Time – LS – ES Critical Path – Group of activities in the project that have a slack time of zero T – total project completion time V – total variance of activities on the critical path

20 Project Crashing Crashing – shorten activity time by adding resources Can be expensive – may be less expensive than cost penalties

21 PERT Advantages Useful at several stages, especially scheduling and control Not mathematically complex Graphical display show relationships Critical path pinpoints activities to closely monitor Documents who is responsible for each activity Applicable to a wide range of industries Monitors schedules and costs

22 PERT Limitations Project activities clearly defined, independent, stable in their relationships Precedence relationships must be specified in advance Time estimates are subjective Danger of too much emphasis on critical path

23 Maintenance and Reliability

24 Introduction What – maintain capability of system while controlling costs Where – Where results of failure can be disruptive, wasteful, and expensive in dollars and lives Why – breakdown – idle facilities – loss of customers

25 Definitions Maintenance – all activities involved in keeping a system in working order Reliability – Probability that a machine function or part will function properly for a specified period of time under stated conditions

26 Improving Individual Components If one component fails, entire system could fail Reliability is the probability of not failing Assuming the reliability of each component does not depend on the reliability of other components, Rs = R1 x R2 x R3 x … x Rn

27 Product Failure Rate - FR(%) = Number Failures / Number units tested x 100% FR(N) = Number of failures / Operating time MTBF = 1 / FR(N)

28 Providing Redundancy Back up components with additional components Rs = R1 + [R2 x (1 – R1)]

29 Maintenance Preventative Maintenance – Routine inspections, servicing, and keeping facilities in good repair to prevent failure Breakdown Maintenance – Equipment fails and must be repaired

30 Implementing Preventative Maintenance Maintenance is costly – so when to maintain? Infant Mortality – high initial failure rate Once past the Infant Mortality phase, determine MTBF Requires maintenance and breakdown record-keeping Difficult to determine full costs of breakdown

31 Increasing repair capabilities Must decide where repairs are to be performed Must decide who will perform repairs Better to have employees perform as much as possible themselves

32 Total Productive Maintenance – TPM Applies TQM concepts to maintenance Employee involvement Excellent maintenance records Designing machines to be reliable, easy to operate, easy to maintain Emphasizing total cost of ownership when purchasing machines Developing preventative maintenance plans Training workers to operate and maintain machines


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